Karnataka exceeds investment target, hits Rs.9-trillion mark (Lead)

Bangalore, June 8 (IANS) It is raining trillions (crores) of rupees in Karnataka at its second Global Investors’ Meet (GIM 2012) even though the advancing south-west monsoon is yet to hit this tech hub.

“We have received investment proposals worth a whopping Rs.7.6 trillion (Rs.7.6-lakh crore) from 730 global and Indian firms, exceeding the modest target of Rs.6 trillion (Rs.6 lakh crore) set for the second edition of GIM,” state Chief Secretary S.V. Ranganath announced at the valedictory function of the two-day mega event here.

In addition, the state government has signed registration of interest for basic infrastructure projects in the state to the tune of Rs.1.68 trillion (Rs.1.68 lakh crore).

The proposed investments and projects in 20 diverse sectors are projected to create about 1.5 million direct jobs to the people, including youth and women.

“A dozen state-run, private and foreign banks have also signed an agreement with the state government to provide Rs.3 trillion (Rs.3 lakh crore) as term loans and working capital to the firms investing across the state in the diverse sectors,” an elated Ranganath told about 1,000 delegates present on the occasion.

Of the 20 sectors, about 40 percent of the total investment will be in energy alone for setting up power projects, followed by iron and steel 15.3 percent, cement 6.3 percent, IT & electronics 6.3 percent, industrial infrastructure 6.2 percent, chemical and petrochemicals 5.5 percent and housing & urban development 4.4 percent.

Among the 30 districts across the state, Bangalore urban and rural districts will account for 19.2 percent of the total investments and projects, followed by Chickballapur and Haveri four percent each.

In this context, state-run Housing & Urban Development Corporation (HUDCO) chairman V.P. Baligar said the state government would have to invest a whopping Rs.1 trillion (Rs.1 lakh crore) to create the required infrastructure, including housing for providing an enabling environment and an eco-system for the prospective investors.

“For the Rs.9.2 trillion investments coming into the state, with prospects of creating 1.5 million jobs over the next five years, the state will have to have concurrently invest in basic infrastructure across urban and industrial areas and housing,” Baligar, an IAS officer from the state cadre, exhorted.